By Ibrahim Moshood, Associate & Tozaye Balogun, Director of Tax Services in Africa
The Federal Inland Revenue Service (“FIRS”) recently issued a Revised Information Circular on the Tax Treatment of Non-Governmental Ogranisations (NGOs), hereafter referred to the as “
Revised Information Circular” or “
the Circular”. The Circular, published on 31 March 2021, amends, updates or replaces the FIRS’ initial information circular (issued in 2010) on the tax exemption status of NGOs – but only to the extent that the initial circular contains information that is inconsistent with the Revised Information Circular.
The Revised Information Circular reiterates the tax-exemptions, filing and other compliances obligations of NGOs. It also provides clarification on the application of the term “
FIRS gives MDAs 6 months to clear tax liabilities
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Law and the Financial Act 2020 | Tribune Online
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Law and the Financial Act 2020
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Published 17 February 2021
A revelation by the Chairman of the Federal Inland Revenue Service, Muhammad Nami, that Nigeria lost about $17.8 billion (N5.4 trillion) between 2007 and 2017 to tax evasion by multinational companies is not only saddening but also self-implicating. Citing a 2014 report on illicit financial flows from Africa, which stated that Nigeria accounted for 30.5 per cent of money lost in Africa, Nami said that to prevent a recurrence, the FIRS created 35 additional tax audit units to stem illicit financial flows out of Nigeria and improve the tax compliance rate.
While such efforts to ramp up the tax collection are noteworthy, it must be said that these have not been impactful enough. Tax evasion is a crime. Section 40 of the FIRS ACT 2007 states that any person who is obliged to deduct any tax but fails to do so or having deducted, fails to pay to the service within 30 days, commits an offence and shall, upon conviction, be liable to p